March 12, 2019: The global vanadium redox flow battery market size is rising with a fast-paced growth over the forecast period reaching USD 1.11 billion by 2025, on account of their longer life span (up to 25 years), and are higher suitability among utility scale and industrial applications, according to a study published by Adroit Market Research. The “Global Vanadium Redox Battery Market 2017 by Type (Graphite Felt Electrode and Carbon Paper Electrode), By Application (Uninterruptible Power Supply, Large Scale Energy Storage and Emergency Power Supply), By Region and Forecast 2018 to 2025” study provides an elaborative view of historic, present and forecasted market estimates.
The global vanadium redox flow batteries market trends have been studied after analyzing the present industry dynamics such as drivers, restraints and opportunities and prevailing threats. Vanadium redox flow batteries market size has been derived on the basis of the number of installations as well as the upcoming targets set up by the governments in different countries. Vanadium redox flow batteries market reflects a deep down analysis of energy storage technologies along with the manufacturing cost breakdown of the batteries across the key geographies. The report also highlights the competitive landscape of the global market considering various strategic developments, contracts taken by key players across the entire industry chain, as well as covers PESTEL and Porter’s Five Forces Analysis.
Rising installations of solar and wind power generation plants are expected to drive the VRFB demand over the forecast period. VRFBs among other battery storage technologies offer numerous advantages. Vanadium redox flow batteries serve as viable energy storage and resupply option for renewable energy and hence can be utilized for large-scale energy storage end-users. These batteries are capable of time-shifting previously generated power for further usage and hence balance the wind and solar supply irregularities. Furthermore, the capacity of VRFBs is expandable by addition of storage tanks. A life span of more than 20 years coupled with higher life cycles and negligible capacity loss. Furthermore, VRFBs are easily scalable for large grid-scale applications, owing to their performance features including peak shaving, load frequency regulation, and improvement of grid efficiency. Lastly, these batteries offer relatively higher safety due to their inflammable chemical nature.
In 2017, graphite felt electrode segment dominated the global vanadium redox flow battery market. Carbon and graphite felts are immensely used as electrode backings in a variety of vanadium redox batteries. However, large surface area and good stability has made the graphite felt to be modified before being used as a vanadium battery electrode.
Substantial evolution of renewable energy sector around the globe is one of the most important drivers of large scale energy storage systems, growing with a CAGR of 34% from 2018 to 2025. Rapid growth in the investments in renewable energy has been observed as the latest vanadium redox flow batteries market trend. It is one of the most promising technologies being developed and installed. In terms of application, the uninterruptible power supply (UPS) segment is experiencing the fastest growth due to increasing number of UPS installations across various industry verticals such as in the commercial spaces like office buildings, cinema halls, emergency lights, hospitals, and data centres as well as in military equipment to provide safe shut down and maintain data integrity.
In 2017, Asia-Pacific headed the vanadium redox flow batteries market and is projected to witness the fastest growth of 36.7% in the coming years. Manufacturers are coming up with innovative designs of electronic devices and incorporating the use of vanadium redox flow batteries in modified designs. Recently, the Government of Japan has established a development goal stipulating that Japanese energy storage battery facilities should capture 50% of the global market share by 2020. To achieve this, Japan has initiated the implementation of subsidies and incentive mechanisms for boosting the application of energy storage batteries in power generation, transmission, distribution, and consumption.
For instance, Sumitomo Electric Industries headquartered in Japan has installed a 60MWH vanadium redox battery system to assist the integration of renewables on the northern Japanese island of Hokkaido. Apart from this, their strategic partnership with CMI group (Belgium headquartered) to market redox battery in the international markets is expected to give Sumitomo better access to European economies.
Key players in the global vanadium redox (VRB) flow battery market are witnessing fierce competition and are adopting numerous strategies to maintain their market presence. Majority of the players are located either in the U.S. or in China, having little presence across other regions. Some of the key players include Dalian Rongke Power Co. Ltd., UniEnergy Technologies, Sumitomo Electric Industries, and Vionx Energy Corporation among others.
Key segments of the global vanadium redox flow battery market
Type Overview, 2012-2025 (MW, USD Mn)
- Carbon Paper Electrode
- Graphite Felt Electrode
Application Overview, 2012-2025 (MW, USD Mn)
- Large Scale Energy Storage
- Uninterruptible Power Supply
- Emergency Power Supply
Regional Overview, 2012-2025 (MW, USD Mn)
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia-Pacific